297. On the morning of May 21, 2013: “U.S. Tax Code and Offshore Holdings,” C-SPAN video library, May 21, 2013; “The New Yorker’s George Packer on America’s Unwinding Equality,” Forum with Michael Krasny, KQED, June 6, 2013; George Packer, The Unwinding: An Inner History of the New America (New York: Farrar, Straus & Giroux, 2013).
298. “To whom much is given, much is required”: Though the inspiration for this quote likely came from the Bible in Luke 12:48 (“For unto whomsoever much is given, of him shall be much required”), Cook attributes it to John F. Kennedy. The president’s exact words were, “For of those to whom much is given, much is required.”
303. Within a few days, Apple: United States v. Apple Inc., et al., No. 12-cv-02826, Opinion & Order, September 6, 2012; United States v. Apple Inc., et al., No. 12-cv-02826, complaint, April 11, 2012; United States v. Apple Inc., et al., No. 12-cv-02826, hearing transcript, May 23, 2013.
Chapter 19: The Red Chair
306. In late May 2013, on the opening night: Tim Cook, interview by Walt Mossberg and Kara Swisher, D11—All Things Digital conference, May 28, 2013, http://allthingsd.com/video/?video_id=0A0DDC54-6929-43AA-818E-3058B33077B7; Tim Cook, interview by Walt Mossberg and Kara Swisher, D10—All Things Digital conference, May 29, 2012, http://allthingsd.com/20120611/apples-tim-cook-says-hello-the-full-d10-interview-video/.
307. “You’re being beaten up”: Mossberg’s quote has been edited for clarity. His exact comment: “You’re being beaten up by various governments over various things, and I think worst of all, there’s a, and your stock is down. And there’s a sense—down significantly—and there’s a sense that, I—actually I’ll tell you something. I honestly don’t even know the price of the stock but whatever. There’s a sense that you may have lost your cool, that somebody else has got the cool. That Samsung has got the cool.”
310. One of the toughest questions: Tim Cook, interview by Walt Mossberg and Kara Swisher, D11—All Things Digital conference, May 28, 2013; In the Matter of Certain Electronic Devices Including Wireless Communication Devices, Portable Music and Data Processing Devices, and Tablet Computers, No. 337-TA-794, U.S. International Trade Commission, July 5, 2013, 58–60; In the Matter of Certain Electronic Devices Including Wireless Communication Devices, Portable Music and Data Processing Devices, and Tablet Computers, No. 337-TA-794, U.S. International Trade Commission, March 19, 2003, 18–19; Dan Levine, “Judge Who Shelved Apple Trial Says Patent System out of Sync,” Reuters, July 5, 2012.
312. On the morning of June 3, 2013: Interview with Fortune columnist Philip Elmer-DeWitt; United States v. Apple Inc., et al., No. 12-cv-02826, transcripts, June 3–20, 2013; Philip Elmer-DeWitt, “The Apple e-Book Trial: The View from the Hard Benches,” Fortune, July 11, 2013.
315. Almost three weeks later: Interview with Philip Elmer-DeWitt; United States v. Apple Inc., et al., No. 12-cv-02826, opinion and order, July 10, 2013.
Chapter 20: Manifesto
319. On a cloudy morning: Interview with Jordan Eskenazi and other WWDC attendees.
321. When Tim Cook and his team: “Apple—WWDC 2013,” YouTube video, uploaded by Apple, June 19, 2013, http://www.youtube.com/watch?v=SRmjUzcpLO0; “Apple’s WWDC 2013 Keynote: iOS 7, iTunes Radio And New MacBook Airs,” ReadWrite (live blog), June 7, 2013, http://readwrite.com/2013/06/07/apple-wwdc-2013-keynote-live-coverage#awesm=~ofmSoX9lVCF7SG.
323. “In the phone market they are”: Matthias Hohensee, “Wir wollten die Angst vor Computern nehman,” Wirtschaftswoche, February 7, 2013. This version was shared with the author by the article’s writer, Matthias Hohensee. It is Wozniak’s exact quote as was actually spoken by him in English. There are other versions attributed to Wozniak on the Internet, but those are English translations of the German translation.
326. The final disappointment: Interview with Ken Segall; “Apple—WWDC 2013,” YouTube video, uploaded by Apple, June 19, 2013, http://www.youtube.com/watch?v=SRmjUzcpLO0; Peter Burrows, “Apple’s TV Ads Touting Company Values Flop with Viewers,” Bloomberg, June 27, 2013; Tim Nudd, “Ad of the Day: Apple,” Adweek, June 11, 2013.
327. Ace Metrix: After the Ace Metrix survey was released, some media questioned the accuracy of the data because it gave higher scores to Samsung, a client. The author determined that the results are still valid. Many companies retain the services of third-party research firms, and that doesn’t automatically render the data to be questionable. Ace Metrix is a respectable firm that is often quoted by industry trade publications including Adweek and Advertising Age. Apple’s former copywriter Ken Segall also validates Ace Metrix’s findings on his blog, writing that the humorous in-your-face ads like Samsung’s tend to do better than quiet ads like Apple’s.
328. In the months that followed: John Paczkowski, “The Incredible Shrinking Apple E-Book Remedy,” All Things Digital, August, 28, 2013, http://allthingsd.com/20130828/the-incredible-shrinking-apple-e-book-remedy/; Nate Raymond,” U.S. Judge Wants External Monitor for Apple in E-books Case,” Reuters, August 27, 2013, http://www.reuters.com/article/2013/08/27/net-us-apple-ebooks-idUSBRE97M0OU20130827; David McKenzie and Charles Riley, “Xiaomi CEO Tired of Steve Jobs Comparison,” CNNMoney, September 13, 2013, http://money.cnn.com/2013/09/12/technology/xiaomi-phones-china/index.html; David Barboza, “In China, an Empire Built by Aping Apple,” New York Times, June 4, 2013; Eric Pfanner, “Samsung’s Profit Rises, but So Does the Competition,” New York Times, July 26, 2013, http://www.nytimes.com/2013/07/26/technology/samsungs-profit-rises-but-so-does-the-competition.html; “Apple Unveils Panicked Man with No Ideas,” Onion, September 20, 2013; “Apple Cedes Market Share in Smartphone Operating System Market as Android Surges and Windows Phone Gains, According to IDC,” IDC, August 7, 2013; “Growth Accelerates in the Worldwide Mobile Phone and Smartphone Markets in the Second Quarter, According to IDC,” IDC, July 25, 2013; Sam Grobart, “Apple Chiefs Discuss Strategy, Market Share—and the New iPhones,” BloombergBusinessweek, September 19, 2013; Harry McCracken and Lev Grossman, “Google vs. Death: How CEO Larry Page Has Transformed the Search Giant into a Factory for Moonshots,” Time, September 30, 2013; Marco Arment, “Off,” Marco.org, October 24, 2013.
Epilogue
330. From the start, Apple embodied: Steve Jobs himself referred to Apple’s exceptionalism at a press conference on July 17, 2010, to address the iPhone 4’s antenna problems. He said the following, according to Reuters. “I guess it’s just human nature that if someone or some organization gets really successful there’s just a group of people who want to tear it down. I see it happening with Google.”
“I see some of these people jumping on us now. It’s like I am not sure what you are after here. Would you rather we were a Korean company instead of an American company? You do not like the fact that we are innovating right here in America and leading the world in what we do? . . . . Of course we’re human, of course we make mistakes.”
Index
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Ace Metrix, 327
Acer, 200
Adams, Steph, 89
ad campaigns, 14; “1984,” 11, 14, 53, 54, 75; agency for, 14, 67; for iPhone 3G, 18; for iPhone 4S, 153–54; “Our Signature” ads, 327; Segell’s analysis, 328; taglines for products, 239, 327; “Think Different,” 4, 14, 75, 327–29
AdMob, 168
Adobe Flash Player, 42, 44–46
Adweek, 327
Ai Qi, 197, 199–209
Albom, Mitch, 154
Alcatel-Lucent, 274
Allen, Tim, 89
All Things Digital conference: Cook at (2012), 306; Cook at (2013), 306–10, 317, 318; Jobs at, 306
Alpine, 262
Amazon, 162, 190; antitrust case and, 303–4, 314–15; as Apple competitor, 248–49; Kindle, 39, 162; Kindle Fire, 284; pricing policy, 162–63, 303; self-publishing program, 164
Amelio, Gil, 12
> AmTran, 261
Andraka, Jack, 276
Android. See Google; Samsung
Anne, Princess Royal, 129
Apple: acquisitions, 12, 69, 134, 150, 155, 168; Adobe clash, over Flash, 44–46; antitrust cases against, 46–47, 278, 302–5, 309, 312–18; brand, 12, 14, 45, 56–57, 67, 332; charity program, 106; Christensen’s analysis, 185–86, 188–90, 193, 334; code of silence, 121, 122; competition for mainstream markets, 44, 46, 125, 159, 162, 170, 171–72, 178, 182, 183, 186, 190, 193, 219, 235, 237, 239, 247–48, 271, 284, 285–86, 290, 308, 323, 332 (see also Google; Samsung); “Cook Doctrine,” 37, 38; core identity as underdog, 53, 54; corporate culture, 8, 12–13, 66, 69, 101, 155, 156, 245, 247–48, 308; criticism of, Daily Show, 53–54; cult following, 11, 54, 182, 321; as an empire, 1, 4, 45, 54, 89, 90, 107, 116, 158, 185, 235, 237, 323, 330, 334; evasive approach to inquiries, 317–18; as falling star, 278–91, 307, 330–38; financial woes (1990s), 11–12; founding of, 10–11; genius trap, 89, 249, 320; growth and earnings (2008–2013), 29–30, 38, 47, 54, 74, 205, 206, 255, 284, 285, 290, 330; image problems and arrogance (hubris issue), 14, 45, 49, 51, 53–54, 122, 212, 241, 243, 261, 278, 280, 283, 302–3; innovation problems post-Jobs, 234–49, 278, 285, 290–91, 319–27, 333–38; inventory excess problem, 57–58, 59; Jobs’s illness, public disclosures, 15–16, 18–19, 20, 24–25, 26–28, 33–34; Jobs’s importance to, 4, 38–39, 73, 74, 89–90, 158–59, 335, 336, 337; Jobs’s overhaul (1996) and meteoric growth, 12–15, 189–90; leadership transition at, xiii, 2, 4, 5, 246–49, 310, 336 (see also Cook, Tim); legal battles with Samsung and others, 160–84, 210–31, 310–11, 331 (see also Apple v. Samsung); long-term planning, 74; loss of mystery and wonder post-Jobs, 236, 238–39, 278, 285, 336; luxury brand image, 138; Macintosh launched, 11; manifesto, 326–27, 328; market capitalization, 112, 143; market share losses, 11, 186, 190, 239, 308, 335 (see also iPad; iPhone); Mukunda’s leadership analysis, 246–48, 334; new product rumors (watch and TV), 336; Obama and Obama administration and, 85, 276–77, 312, 330; patent law and lawsuits (see Apple v. Samsung); patents held by, 274; patriotism questioned, 293–303; pop culture influence, 46, 182; principles, 37; proprietary tendencies, 193; quarterly earnings conference calls, 20, 30, 36, 158, 206, 282; secrecy at, xiii, 13, 27, 29, 68, 93, 107, 148, 151, 221, 241; share price, 20, 23, 38, 54, 73, 85, 149, 229, 283–85, 333; tax avoidance charges and Senate hearings (2013), 294–303, 331; as unique, 325, 330–31; worst failure of, 188–89. See also Foxconn; Jobs, Steve; management; suppliers and manufacturing; specific products; specific topics
“Apple: Siri Goes AWOL, Stock Dips” (WSJ), 149
Apple Maps, 235–37, 278, 309; Cook and apology letter, 241–43; Cue takes over, 244; failure of, 240–43, 285; Forstall and, 241
Apple Operations International, 297
Apple Sales International, 297
Apple Stores, 15, 28, 132, 183, 321; Beijing, 127–28; Browett heads, 132, 244–45; experience of, 245; iPad Mini sales, 286; Tokyo, 1, 50
Apple TV remote, 288–89
Apple University, 245–46
Apple v. Samsung, xiv, 174, 178–84; Apple seeks court injunction and loses, 233, 270, 272–73, 275, 278; basic argument, 213; closing statements, 227–28; damage award reduced, 274; importance of, 210–12, 230–31, 234; judge (see Koh, Lucy); jury foreman, 228, 229, 230, 266–69; jury instructions, 227, 229; jury misconduct, 271–72; jury selection, 217; lack of impact on Samsung, 273–74; lawyers, 179–80, 210, 216–19, 222, 224–29, 233, 270, 271; O’Brien spoof, 223–24; Samsung new trial request and appeals, 268–71; Samsung’s response to verdict, 232–33; settlement attempts, 183, 210, 273, 311, 331; strategies used, 214; trial, 210–28; verdict, 229–31
App Store, 30, 45–46, 321; anti-Flash position and, 44, 55; antitrust regulators and, 46–47, 55; approval process, 46; product launch, 9–10, 16, 82; revenue split model, 30, 44; review guidelines, 55; sales revenue, 46; WWDC 2013 and, 321–22. See also Apple Maps; Siri
Arment, Marco, 335
Arrington, Michael, 44
AT&T, 53, 67, 106, 312
Auburn University, 97–99, 103, 104; Auburn Creed, 98; Cook’s address, 98, 99
Ayotte, Kelly, 300
Baez, Joan, 89
Baker, Susan, 95
Barnes & Noble, 162, 190, 314–15
Bennett, Susan, 148
Benton, Dan, 309
Bernstein, Jared, 125
Beyond (rock band), 202, 206
Bezos, Jeff, 249
Blevins, Tony, 61
Blodget, Henry, 19
Bloomberg, Michael, 185
BloombergBusinessweek: Cook interview about Apple’s obligation to U.S., 294; “Sorcerer’s Apprentice,” 136; “What, Us Worry?,” 337, 338, 339
Bloomberg media: “Steve Jobs’ Obituary,” 23
Bloomberg Radio, 310
Bono, 89, 130
Borchers, Bob, 68
Briggs, Jon, 148
Brin, Sergey, 168
Broadcom, 218
Browett, John, 132, 244–45, 288
Brown, Tim, 137
Brunner, Robert, 138
Bulfin, Robert, 98
Bullock, Phillip, 300
BusinessWeek: Christensen’s predictions in, 186; “The Fall of an American Icon,” 12
BYD, 119, 260
C3 Technologies, 236
Cage, Nicholas, 141
Campbell, Bill “Coach,” 15, 29, 82, 84
Carmel Valley Ranch, 68, 69–70, 157
Cartwright, Netta, 137
Catherwood, Peter, 230
Chase, Will, 292
Chen, Jason, 48, 49
Chen Chusheng, 208
Cheyer, Adam, 149, 152
Chimei Innolux, 259
China, xiii, xiv; Apple iPhone 5 and workers’ revolt, 250–53; as Apple market, 206, 332, 333; Apple targeted for criticism, 278–82; black market in, xiv, 109; Cook apology to, 283; Cook visit to, 127–28; economic change in, 198; economy and per capita income, 206; Golden Week holiday, 251–52; Henan province, 253–54; jujube trees, 254; manufacturing and pollution in, 119; mobile phone companies, 119, 332; Shenzhen, 196; suicide rate, 111 ; Western exploitation resented, 280. See also Foxconn
China Central Television (CCTV): 315 Evening Gala, 279; Apple accused of disrespect, 279; Channel 2 interview with Apple attempt, 280–81; critics of, 279–80
China Labor Watch, 252
China Mobile, 332
Choi Gee-sung, 183
Christensen, Clayton M., 185–90, 246; on Apple after Jobs, 193–94; Apple as case study for, 188–90; Apple’s future and, 194–95; disruption theory, 185, 186–88; solutions to disruption, 191–92
Chunghwa Telecom, 259
Cisco, 119
Clinton, Bill, 77, 89
Clow, Lee, 67
Coldplay (band), 4; “Viva la Vida,” 4–5
Colony, George, 158–59
Compaq, 56, 58, 256
Consumer Reports, 51
Cook, Donald and Geraldine, 92–94, 96, 97
Cook, Tim, 24, 55, 89–107, 126–28, 158; acquisitions and, 69; All Things Digital conference, 306–10; ambition, 91, 95, 96; announcing Jobs’s death, 84–85; apology to China, 283; apology to customers for Apple Maps, 242; appearance, 91; as Apple CEO, 91, 93, 104–7, 126–28, 130–32, 140–41, 156–59, 185, 194, 195, 219, 241–49, 278–91, 294–303, 306–10, 319–27, 336–38; as Apple COO, 62; Apple hiring of, 14, 56–57; Apple manifesto and, 326–27, 328; Apple’s future and, 195; Apple share price decline and, 283–85; Apple’s investors and, 158; Apple tax evasion tactics and, 294; Apple v. Samsung and, 219, 229, 275; Asian supply chain and, 4, 60, 116, 117, 118, 126–28, 158, 260, 261–62; as “Attila the Hun of inventory,” 60, 249, 336; Auburn University and, 97–99, 103, 104; BloomsbergBusinessweek interview, 294; career path, 56, 91, 99, 247; childhood and early years, xiv, 93–99; China visit, 127–28; conference calls, Wall Street analysts, 36, 158; consolidation of power, 61–62; critics of, 158–59; deposition in antitrust case, 27
8; diet and personal habits, 59, 100, 101; family of, 92–93; first jobs, 95; Forstall and, 241; frugality, 102; generosity, 104, 106–7; hiring of data crunchers, 194; hobbies, 102, 103, 104; home of, 102, 141; innovation and, 194, 245–49, 285, 286; inquiry into Foxconn, 116–17; iPhone 4’s defects and, 51; iPhone 4S product launch, 144, 155; Ive and, 136, 140–41; job offers to, 91; Jobs and, 31, 55–56, 62, 67, 90–91; Jobs’s advice to, 81, 247; Jobs’s illness and, 27, 32, 33, 36–38, 73–74, 78; Jobs’s influence on, 107; Jobs’s legacy and, 90; Jobs’s memorial service and, 3, 89; Jobs steps down and, 80–82, 83; management style, 31, 51, 58–61, 62, 91, 99–101, 105, 131, 157, 245, 246–47; Maps launch, 241–44; mentors and heroes of, 103, 104, 298; Mukunda’s analysis and, 246–48, 334; Obama and, 276; as operations team head, 58–62, 99–100; personality and character, 31, 36, 56, 58, 90–93, 95, 97, 101, 102, 103, 127, 300, 302, 337; product development and, 185; relationships, 102–3; sales team and, 61–62; Samsung and, 160, 174–75, 183; Senate hearings (2013), 297–303; stock bonuses given by, 141; success of, 91; Terry Gou and, 257; Top 100 meeting, 157–58; vision for Apple, 36, 55; work ethic, 98, 101–2, 103; WWDC (2008), 18; WWDC (2013), 319–27
“Cook Doctrine,” 37, 38, 55
Cote, Denise, 304–5, 312–17, 331
Cotton, Katie, 18–19, 33, 70
CTimes, 263
Cue, Eddy, 67, 70, 78, 105–6, 157, 158, 287; antitrust case and, 314–15, 316; Cook promotes, 105, 106; iBookstore and, 163; Jobs and, 105–6; stock bonus, 141; takes over Siri and Maps, 244
Cupertino, California, xiii, 7; BJ’s Restaurant and Brewhouse, 7, 66–67; new Apple campus and, 71–72, 79–80. See also Apple headquarters
Cyran, Robert, 143
Daily Mail newspaper, 115, 116, 117
Daily Show (TV series), 53–54
Haunted Empire: Apple After Steve Jobs Page 42